Hyundai to focus on increasing domestic market share

Hyundai Motor India has revealed that it is aiming to increase its share in the domestic market. The company is working on a new strategy to achieve this.

Hyundai has been the leader as far as exporting cars is concerned. However, as a part of the new strategy, the company has stopped exporting cars to many European markets and is concentrating its efforts on the domestic market, which has seen a growing demand.

Hyundai is aiming to increase its annual sales from 3.80 lakh units to 4.10 lakh units. For this the company plans to launch more localised products. It aims to introduce at least three new products or facelifts every year. The company is also looking at expanding its presence in the SUV segment and looking to enter the MPV segment.

Hyundai's market share has increased from 19.1% in 2010 to 21.6%. However, catching up with Maruti will not be an easy task. Maruti's monthly sales stand at 85,000-90,000 units while Hyundai is way behind with 30,000-36,000 units. Maruti is not sitting quietly either. It plans to launch many new models in the near future.

Apart from the large gap, Hyundai does not have the capacity to increase production by much. The company's Chennai plant churns out 6.3 lakh units annually. At the most, this can be increased to 6.8 lakh units. A second plant will have to be started in quick time if Hyundai wants to gain ground.

Source: Business Standard